4

5

Problem 7-06 Value of Operations: Constant Growth EMC Corporation has never paid a dividend. Its current free cash flow of $370,000 is expected to grow at a constant rate of 5.7%. The weighted average cost of capital is WACC - 14.25% Calculate EMC's estimated value of operations, Round your answer to the nearest dollar Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2016 2017 2018 2019 Free cash flow $606.82 5667.50 $707.55 $750.00 (millions of dollars) Growth is expected to be constant after 2016, and the weighted average cost of capital is 11.85%. What is the horizon (continuing) value at 2019 ir growth from 2018 remains constant? Round your answer to the nearest dollar. Do not round intermediate calculations